The global satellite transponder market to grow at a CAGR of 8.63%
during the period 2016-2020.

The report covers the present scenario and the growth prospects of the
global satellite transponder market for 2016-2020. The market size
estimation in the report is based on the total number of transponder
units deployed in the satellites and on the utilization rates of the
deployed transponders. The revenue calculations include the sales of the
transponders as well as the cost of leasing the transponders. The
forecast has been made on the basis of the number of satellites to be
launched by the satellite operators during the forecast period.

A trend which is influencing market growth is the trade-off between
performance and coverage. As the satellite industry is maturing and the
operators are targeting a more dynamic and flexible market, the design
complexities of the satellites are increasing. For instance, the Ka-band
transponder is affected by the performance/coverage trade-off, where the
link is highly susceptible to propagation impairments caused by rain and
other atmospheric disturbances. An important factor in communication is
the size of the antenna, which is inversely scalable to the square of
the frequency. Various factors like antenna size, coverage, frequency
band of the transponder, and power affect the performance of a satellite.

According to the report, a key growth driver is the rising demand for
HTS. The HTS uses many small spot beams distributed across a particular
service area. These beams help the satellite to link to small aperture
earth stations at high data rates. Attenuation from rain has been a
major challenge for many satellite links including the HTS. However,
such satellites have developed sufficient rain fade margins to provide a
good quality link. The transponders used in HTS can be of Ku and Ka
bands. On an average, a typical HTS satellite should have many
ultra-wideband transponders distributed along the beams with a bandwidth
of 100Mhz.

Further, the report states that one challenge that could derail market
growth is the fast evolution of the telecommunication network. In
satellite communication, the average price of leasing satellite adds up
the TCO. The GSM infrastructure cost is profitable compared to the
average wholesale cost of $1.2 million per 36 MHz transponder on an
annual basis.